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  1. #631
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    Reinsurance must be getting more and more expensive as well, that must affect their future bottom line.

  2. #632
    ShareTrader Legend bull....'s Avatar
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    just listened to conference call very vague around capital needed for new companies, Im thinking they will need a heap of new capital to recapitalize both companies to meet rbnz criteria and if they cant separate runoff completely then new tower is still liable for insurance claims so very iffy in my opinion sounds like a plan but very risky this stock. as they say one more adverse event could be the nail in the coffin?
    one step ahead of the herd

  3. #633
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    Quote Originally Posted by Arbroath View Post
    ...
    New Tower would also quickly become a takeover target as its a clean business.
    Do the latest earthquakes reveal that NZ risk may still be underestimated? How much more will insurance and re-insurance premiums be rising and how much can the market withstand before more and more households and business forego insurance?

  4. #634
    Alley Cat Brain's Avatar
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    Great choice of name - Runoff . I can't associate anything positive with this name.

    all I can think of is

    run off with the wife
    run off with the money

  5. #635
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    Quote Originally Posted by Brain View Post
    Great choice of name - Runoff . I can't associate anything positive with this name.

    all I can think of is

    run off with the wife
    run off with the money
    At least it is quite an honest name...However my suggestion would be "Black Hole."

  6. #636
    Legend Balance's Avatar
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    Quote Originally Posted by bull.... View Post
    just listened to conference call very vague around capital needed for new companies, Im thinking they will need a heap of new capital to recapitalize both companies to meet rbnz criteria and if they cant separate runoff completely then new tower is still liable for insurance claims so very iffy in my opinion sounds like a plan but very risky this stock. as they say one more adverse event could be the nail in the coffin?
    Bad bank, new bank makes a lot of sense.

    Will involve a massive injection of capital to hive off 'bad' bank so best to wait on the sidelines.
    They will need to capitalize the 'bad' bank with at least the current level of equity (NTA) of $160m to satisfy RBNZ and insurance council.

    169m shares on issue so a 2 for 1 at 50c?

    Amount required reduced by amount from a cornerstone shareholder (say, Heartland Bank)?

    Interesting times ahead.

    Fat fat fees for the corporate advisors!

  7. #637
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    Since Christchurch, it seems that many people are now discovering after the latest quakes that to "keep premiums affordable" they have to a large extent "Claytons" insurance policies: http://www.stuff.co.nz/national/nz-e...r-quake-relief

    Would a policy with a reasonable excess to cover you for all risks in NZ now be unaffordable? The cost of living on the Pacific ring of fire...

  8. #638
    Legend peat's Avatar
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    Whats up with the 13.2 million declared as exposure to the Kaikoura EQ's in the last release???
    I seem to recall a few weeks ago or less they declared their exposure as maximum $7.2 M

    Management is pushing its luck with the recent release - it uses so many superlatives when the recent history of this company is nothing but a shambles.
    How is 14 Mill down the tube in IT write offs. Who needs insurance claims to destroy shareholder wealth when you have this going on.

    The company remains a speculative play only - doesnt qualify as an investment any more.

  9. #639
    Speedy Az winner69's Avatar
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    I'd be gutted if corporate welfare happened here

    Tower need to manage their way through these disasters .....even if shareholders have to front up with more dosh

    http://www.interest.co.nz/insurance/...s-capital-ring
    “ At the top of every bubble, everyone is convinced it's not yet a bubble.”

  10. #640
    Speedy Az winner69's Avatar
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    “ At the top of every bubble, everyone is convinced it's not yet a bubble.”

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